Contrasting Galecto (NASDAQ:GLTO) & Rigel Pharmaceuticals (NASDAQ:RIGL)

Galecto (NASDAQ:GLTOGet Rating) and Rigel Pharmaceuticals (NASDAQ:RIGLGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Galecto has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

41.2% of Galecto shares are owned by institutional investors. Comparatively, 80.1% of Rigel Pharmaceuticals shares are owned by institutional investors. 8.1% of Galecto shares are owned by insiders. Comparatively, 4.7% of Rigel Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Galecto and Rigel Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galecto 0 0 1 0 3.00
Rigel Pharmaceuticals 0 1 2 0 2.67

Galecto currently has a consensus price target of $7.00, suggesting a potential upside of 163.16%. Rigel Pharmaceuticals has a consensus price target of $7.67, suggesting a potential upside of 149.73%. Given Galecto’s stronger consensus rating and higher probable upside, analysts clearly believe Galecto is more favorable than Rigel Pharmaceuticals.

Profitability

This table compares Galecto and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galecto N/A -38.28% -36.73%
Rigel Pharmaceuticals -12.00% -31.64% -9.29%

Valuation & Earnings

This table compares Galecto and Rigel Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galecto N/A N/A -$51.75 million ($2.05) -1.30
Rigel Pharmaceuticals $149.24 million 3.54 -$17.91 million ($0.11) -27.91

Rigel Pharmaceuticals has higher revenue and earnings than Galecto. Rigel Pharmaceuticals is trading at a lower price-to-earnings ratio than Galecto, indicating that it is currently the more affordable of the two stocks.

Summary

Rigel Pharmaceuticals beats Galecto on 8 of the 13 factors compared between the two stocks.

Galecto Company Profile (Get Rating)

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB0139, an inhaled inhibitor of galectin-3 that is in Phase IIb clinical trial for the treatment of severe fibrotic lung diseases, such as idiopathic pulmonary fibrosis, a life-threatening progressive fibrotic disease of the lung. Its products also comprise GB2064, which is in Phase I/IIa for the treatment of myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase I/IIa for the treatment of cancer and fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

Rigel Pharmaceuticals Company Profile (Get Rating)

Rigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat hematologic disorders, cancer, and rare immune diseases. The company offers Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia. It also develops Fostamatinib that is in phase III clinical trial for the treatment of warm autoimmune hemolytic anemia; phase III clinical trial for the treatment of hospitalized COVID-19 patients; and phase III clinical trial for the treatment of COVID-19. In addition, the company is developing R289, an oral interleukin receptor associated kinase 1/4 inhibitor, which is in phase I clinical trial for autoimmune, inflammatory, and hematology-oncology diseases; and R552, a receptor-interacting serine/threonine-protein kinase 1 inhibitor that has completed phase I clinical trial for autoimmune and inflammatory diseases. It has research and license agreements with AstraZeneca AB for the development and commercialization of R256, an inhaled JAK inhibitor; BerGenBio AS for the development and commercialization of AXL inhibitors in oncology; and Daiichi Sankyo to develop murine double minute 2 inhibitors for solid and hematological malignancies, as well as license and supply agreement with Kissei Pharmaceutical Co., Ltd. to develop and commercialize Fostamatinib. The company also has a license agreement and strategic collaboration with Eli Lilly and Company to co-develop and commercialize R552 for various indications, including autoimmune and inflammatory diseases, as well as other non-central nervous system (non-CNS) disease development candidates. Rigel Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in South San Francisco, California.

Receive News & Ratings for Galecto Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Galecto and related companies with MarketBeat.com's FREE daily email newsletter.